Daijiworld Media Network - New Delhi

New Delhi, Apr 28: Indian airlines are facing mounting financial pressure as aviation turbine fuel (ATF) prices soar to record levels amid the ongoing West Asia conflict, prompting urgent appeals to the government for relief measures.

In a communication to the Ministry of Civil Aviation, the Federation of Indian Airlines (FIA), representing major carriers, warned that the sharp and unpredictable rise in fuel costs is severely affecting both domestic and international operations. The industry body said immediate intervention is necessary to ensure continuity of services and prevent further strain on the sector.

Earlier this month, ATF prices crossed an unprecedented ?2 lakh per kilolitre mark for certain categories. Domestic fuel prices rose by about 8.5 per cent, while costs for non-scheduled, charter and ad-hoc operators more than doubled. This surge has surpassed previous highs seen during the global energy crisis in 2022.

Airlines said the current pricing structure has created significant cost imbalances, rendering several routes financially unviable. International operations have been hit harder, with overseas ATF prices increasing by ?73 to ?75 per litre, weakening profitability and intensifying competition from foreign carriers operating in lower-cost environments.

Fuel expenses now account for nearly 55 to 60 per cent of total operating costs, compared to the earlier 30 to 40 per cent range. Elevated refinery margins have further contributed to keeping jet fuel prices high, even when global crude prices show signs of easing.

In response, the FIA has urged the government to temporarily suspend the 11 per cent excise duty on domestic ATF, reduce VAT rates, and reintroduce a price stabilisation mechanism to ease volatility.

While the government has taken steps to promote long-term solutions by allowing blending of ATF with synthesised hydrocarbons to support sustainable aviation fuel development, airlines stressed that immediate pricing relief is crucial to avoid operational disruptions, rising airfares and reduced connectivity.